MetLife settles with government in payments probe

San Diego  Insurance giant MetLife Inc. agreed to pay $13.5 million to the federal government for its role in making improper payments to a San Diego insurance brokerage over a six-year period, federal prosecutors announced Thursday.

In a news release U.S. Attorney Karen Hewitt said the payment is part of a settlement the company agreed to enter into with the government.

The payments were made between 1999 and 2005. Neither the 15-page agreement nor the U.S. Attorney’s Office identified the San Diego-based insurance brokerage that received the payments or the firm’s CEO.

According to the settlement agreement, MetLife made millions in improper payments to the brokerage in order to get the business of the firm’s clients. The brokerage firm dealt with large companies, helping them find insurance companies that could provide life, health and disability benefits for their employees.

The improper payments were made so the brokerage would steer large clients to MetLife, according to the agreement. They were termed “special fees” or “override payments” and were never disclosed to MetLife’s customers or the government as required by law.